People’s Bank records Rs. 272.2 bn gross income in nine months of 2024

People’s Bank reported total consolidated operating income of Rs. 75.4 billion and post-tax profit of Rs. 6.4 billion for the nine months ended 30 September 2024.

Excluding the impact of exceptional adjustments in view of greater prudence, considering the yet to be finalised debt restructuring initiatives, these figures on a normalised basis were otherwise Rs. 101.5 billion and Rs. 20.2 billion, respectively, reflecting a growth of 50.0 percent and 193.6 percent, People’s Bank said.

Consolidated net interest income rose to Rs. 60.4 billion during the nine months from Rs. 44.6 billion in the same period 2023. On a normalised basis, excluding the impact of the aforementioned exceptional items, consolidated net interest margins improved to 3.2 percent from 2.1 percent during 2024 primarily reflecting the reduced and reducing term deposit cost of funding. 

Consolidated net fees & commissions amount to Rs. 11.3 billion - representing a 25.1 percent growth on a like for like basis. Total consolidated operating expenses amounted to Rs. 52.4 billion (2023: Rs. 45.9 billion).
Total consolidated customers deposits touched Rs. 2,933.2 billion (end 2023: Rs. 2,745.2 billion) whilst net loans amounted to 1,848.5 billion (end 2023: Rs. 1,823.8 billion). Total consolidated assets reached Rs. 3,396.0 billion at period end (end 2023: Rs. 3,208.2 billion). 

The bank’s total Tier I and Total Capital Adequacy Ratios were 11.1 percent and 16.9 percent, respectively at September 30, 2024 (end 2023: 12.4 percent and 17.4 percent) whilst, on a consolidated basis, it was 12.6 percent and 17.7 percent, respectively (end 2023: 13.7 percent and 18.2 percent). The bank’s solvency levels continue to remain sound with augmented by the recent Rs. 13.5 billion Basel III compliant Tier II debt issuance. 
Commenting on the results of the bank, its Chief Executive Officer/ General Manager Clive Fonseka noted the Bank has made notable positive progress on several fronts despite the many challenges encountered due to the country’s deeply distressed macro-economic circumstances. 

“As we continue to operate within the complexities of a recovering macroeconomic landscape, we remain committed to intensifying our efforts in several core areas,” he said.

“Foremost, on driving innovation across all aspects of our business, ensuring that we stay ahead of the curve in delivering cutting-edge financial solutions. 

“Two, to strengthen collaboration, both within the organization and with external partners and thereby creating a more cohesive and agile approach to problem solving. Three, to further promote financial inclusion so that all segments of society have the opportunity to participate in, and benefit from, the broader economy,” Fonseka elaborated.

The bank’s Head of Finance Azzam A. Ahamat noted that the nine months’ results on a normalised basis not only reflect the bank’s ability to make meaningful progress, but also its strength in marching forward amidst the numerous obstacles encountered along the way.